Armchair urban design: How would you plan the special bike/walk streets?

Federal dollars are being used to redesign some Twin Cities residential streets to favor bicyclists and walkers.

Pedestrians technically should have right-of-way, but I've seen some cars pulling right-of-weight. How can streets make pedestrians and cyclists safer while preventing automobile traffic issues? How would you plan the special bike/walk streets? Submit your commentary outlining your plan or explaining your opposition.